The Sterling had a poor week against the USD, but still finds itself within a relatively good value range versus the greenback. The GBP did take a hit as poor economic data from the U.K. sent a shiver through traders who had been showing increased risk appetite. Today will be relatively quiet with data, last night the Rightmove HPI was released and showed a decline of 1.7%. Tomorrow CPI releases will be brought forth and the BOE Inflation Letter could follow if inflation proves to meet the estimates calling for a 3.0% in the Core statistics. The troubling aspect about inflation in the U.K. is that it is happening on a back drop when sluggish growth is taking place – which is a less than palpable happenstance. The Sterling will face an interesting battle ground this week as traders take their positions in a rather tentative market atmosphere.
Written by bforex.com